The annual inflation rate in Canada edged up to 2 percent in April 2019 from 1.9 percent in the prior month, matching market expectations. It is the highest inflation rate since December, driven by prices of shelter and transportation. Inflation Rate in Canada averaged 3.13 percent from 1915 until 2019, reaching an all time high of 21.60 percent in June of 1920 and a record low of -17.80 percent in June of 1921.

Inflation Rate in Canada is expected to be 1.80 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Canada to stand at 2.10 in 12 months time. In the long-term, the Canada Inflation Rate is projected to trend around 2.10 percent in 2020, according to our econometric models.

Canada Inflation Rate
Forecast Data Chart
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Calendar GMT Actual Previous Consensus TEForecast
2019-02-27 01:30 PM Inflation Rate YoY 1.4% 2% 1.5% 1.8%
2019-03-22 12:30 PM Inflation Rate YoY 1.5% 1.4% 1.4% 1.5%
2019-04-17 12:30 PM Inflation Rate YoY 1.9% 1.5% 1.9% 1.7%
2019-05-15 12:30 PM Inflation Rate YoY 2% 1.9% 2% 2%
2019-06-19 12:30 PM Inflation Rate YoY 2%
2019-07-17 12:30 PM Inflation Rate YoY 1.8%
2019-08-21 12:30 PM Inflation Rate YoY

Canada Inflation Rate at 4-Month High of 2%

The annual inflation rate in Canada edged up to 2 percent in April 2019 from 1.9 percent in the prior month, matching market expectations. It is the highest inflation rate since December, driven by prices of shelter and transportation.

Year-on-year, main upward pressure came from prices of shelter (2.7 percent, the same rate as in March) and transportation (2.5 percent vs 1.9 percent), as downward pressure from gasoline lessened (-1.6 percent vs -4.4 percent). Also, cost was higher for recreation, education and reading (1.8 percent vs 0.2 percent) and health and personal care (0.7 percent vs 0.2 percent) 

On the other hand, inflation slowed for food (2.9 percent vs 3.6 percent), primarily driven by a decline in the fresh or frozen beef index (-0.8 percent); clothing & footwear (1 percent vs 1.5 percent) and alcoholic beverages, tobacco products and recreational cannabis (2 percent vs 3 percent). In addition, prices fell for household operations, furnishings and equipment (-0.1 percent vs 0.5 percent).

Regarding special aggregates of the CPI, prices of durable goods rose 1.3 percent, up from a 1.2 percent increase in the prior month; and cost of services accelerated to 2.4 percent following a 2.2 percent gain in March, with the travel tours index rising 8.4 percent compared with April 2018. The increase was partly attributable to the fact that the first two days of the Easter long weekend, a popular time for travel, took place in April this year. Air transportation prices (+6.6 percent) continued to rise, amid jet groundings and increased April holiday travel. Also, the price of energy products rebounded (0.7 percent vs -1.2 percent).

On a monthly basis, consumer prices went up 0.4 percent, after a 0.7 percent gain in March and in line with market expectations. Monthly inflation was led by a 10 percent rise in gasoline prices largely due to a new carbon tax being implemented in New Brunswick, Ontario, Manitoba, PEI and Saskatchewan, while British Columbia hiked its existing carbon tax.

The BoC's annual core inflation, which excludes volatile items, dropped to 1.5 percent in April from 1.6 percent in the previous month and below market expectations of 1.8 percent.

Statistics Canada | Luisa Carvalho |
5/15/2019 2:56:22 PM

Canada Prices Last Previous Highest Lowest Unit
Inflation Rate 2.00 1.90 21.60 -17.80 percent [+]
Inflation Rate Mom 0.40 0.70 2.60 -1.30 percent [+]
Consumer Price Index CPI 136.00 135.40 136.00 12.10 Index Points [+]
Core Consumer Prices 133.30 133.10 133.30 61.70 Index Points [+]
Core Inflation Rate 1.50 1.60 5.40 0.00 percent [+]
GDP Deflator 107.70 108.60 108.60 11.80 Index Points [+]
Producer Prices 118.60 117.10 119.70 15.60 Index Points [+]
Producer Prices Change 1.50 1.20 21.10 -7.20 percent [+]
Export Prices 112.50 112.70 113.20 59.50 Index Points [+]
Import Prices 121.50 121.00 8964.00 73.00 Index Points [+]
Food Inflation 2.90 3.60 20.18 -7.14 percent [+]
CPI Housing Utilities 144.10 143.80 144.10 39.10 Index Points [+]
CPI Transportation 143.00 140.60 143.00 10.90 Index Points [+]

Canada Inflation Rate

In Canada, the most important categories in the CPI basket are Shelter (27.5 percent of the total weight) and Transportation (19.3 percent). Food accounts for 16.1 percent; Household Operations, Furnishings and Equipment for 11.8 percent; Recreation, Education and Reading for 11.8 percent; Clothing and Footwear for 5.7 percent; Health and Personal Care for 5 percent; Alcoholic Beverages and Tobacco Products for the remaining 3 percent. The CPI basket is reviewed every four years on the basis of household surveys. The current weights are based on spending patterns in 2009. This page provides - Canada Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Canada Inflation Rate - actual data, historical chart and calendar of releases - was last updated on May of 2019.

Actual Previous Highest Lowest Dates Unit Frequency
2.00 1.90 21.60 -17.80 1915 - 2019 percent Monthly

Country Last Previous
Argentina 55.80 Apr/19
Australia 1.30 Mar/19
Brazil 4.94 Apr/19
Canada 2.00 Apr/19
China 2.50 Apr/19
Euro Area 1.70 Apr/19
France 1.30 Apr/19
Germany 2.00 Apr/19
India 2.92 Apr/19
Indonesia 2.83 Apr/19
Italy 1.10 Apr/19
Japan 0.90 Apr/19
Mexico 4.41 Apr/19
Netherlands 2.90 Apr/19
Russia 5.20 Apr/19
Saudi Arabia -1.90 Apr/19
Singapore 0.80 Apr/19
South Africa 4.40 Apr/19
South Korea 0.60 Apr/19
Spain 1.50 Apr/19
Switzerland 0.70 Apr/19
Turkey 19.50 Apr/19
United Kingdom 2.10 Apr/19
United States 2.00 Apr/19